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CBN grants Diamond bank approval to operate as National bank

The Central
Bank of Nigeria (CBN) has granted Diamond Bank Plc, approval to operate as a
national bank following its application for it.

The bank’s
Chief Executive Officer, Mr Uzoma Dozie, said this in a statement signed by the
bank’s Head of media, Ezechinyere Anyanwu on Friday in Abuja.

According to
Dozie, the move was part of Diamond Bank’s strategy to focus on Nigeria’s
significant opportunities.He said that the change in the license means Diamond
bank can expand product services to Nigerian consumers.

Dozie said:
”With this approval the bank will cease to operate as an International Bank.

“The
re-licensing as a national bank supports Diamond’s objective of streamlining
its operations to focus resources on the significant opportunities in the Nigerian
retail banking market, and economy as a whole.

“The move
follows Diamond’s decision to sell its international operations, which included
the disposal of its West African Subsidiary in 2017 and Diamond Bank UK, the
sale of which is currently in its final stages.

“The change
to national bank status also enables the bank to maintain a lower minimum
capital requirement of 10 per cent as against 15 per cent required for
international banks.

Dozie said
that the approval would enable the bank to deploy more capital for stronger
growth in the quarters ahead through additional investment in technology
platforms.

He said it
would also enable the bank deploy funds to customer acquisition and expansion
of loans to the critical sectors of the economy. According to Dozie, the move
to a national banking license marks a continuation of a strategy to focus on
Nigeria’s significant fundamental trends.

This, he
said included a large under banked population and Africa’s biggest economy.

He said: ”By
focusing and optimising our resources towards Nigeria and the priority area of
retail banking, we will be better positioned for longer term growth and greater
profitability.

“The
reduction in minimum capital requirement also increases our capacity to expand
the quantum of business and product services we can offer consumers.

“It will
also represent a key step in strengthening our financial position.

“This
development does not affect the bank’s ability to offer services to its clients
in international locations.

”Rather,
with focus on its domestic business being priority, the bank also intends to
pay down in full, the Eurobond loan of 200milliin dollars at maturity in May
2019.

According to
the chief executive, there will be no refinancing of the loan.He said this was
because of the intent to pay down with foreign exchange generated from its
internal operations, a reflection of the solidity of its operations and funds
flow in the last few years.

He further
said that top quality services to international customers would continue
through the bank’s digital channels and network of correspondence banks.